How can the market demand for a product be inelastic but the demand for a particular firm is elastic?
A) There is no advertising.
B) There is a sufficiently large number of sellers.
C) There is only one or two sellers.
D) Buyers do not have complete information.

Question

Quizplus · Accepted Answer

The market demand for a product can be inelastic if it is a necessity or if there are no close substitutes for it. However, the demand for a particular firm can still be elastic if there are many other competitors in the market offering similar products or services, causing consumers to switch to alternatives easily. This is often the case when there are a sufficiently large number of sellers in the market.

How Can the Market Demand for a Product Be Inelastic